Course syllabus for Strategic management and decision making in construction

Course syllabus adopted 2025-02-17 by Head of Programme (or corresponding).

Overview

  • Swedish nameStrategisk ledning och beslutsfattande i byggsektorn
  • CodeACE585
  • Credits7.5 Credits
  • OwnerMPDCM
  • Education cycleSecond-cycle
  • Main field of studyCivil and Environmental Engineering
  • DepartmentARCHITECTURE AND CIVIL ENGINEERING
  • GradingTH - Pass with distinction (5), Pass with credit (4), Pass (3), Fail

Course round 1

  • Teaching language English
  • Application code 88118
  • Maximum participants45 (at least 10% of the seats are reserved for exchange students)
  • Open for exchange studentsYes

Credit distribution

0124 Written and oral assignments 1.5 c
Grading: UG		 1.5 c
0224 Written and oral assignments 2.5 c
Grading: TH		 2.5 c
0324 Project 3.5 c
Grading: TH		 3.5 c

In programmes

Examiner

Eligibility

General entry requirements for Master's level (second cycle)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Specific entry requirements

English 6 (or by other approved means with the equivalent proficiency level)
Applicants enrolled in a programme at Chalmers where the course is included in the study programme are exempted from fulfilling the requirements above.

Course specific prerequisites

Only for students admitted to MSc programs within Architecture and Civil Engineering, as well as for exchange students with equivalent backgrounds.

Aim

Construction sector organisations are navigating a complex and rapidly changing environment. While issues such as budget overruns, delays, quality inefficiencies and project uncertainties continue to be common reasons for project failures, new challenges related to climate change, sustainability, circularity, and digitalisation are reshaping the industry. These evolving demands require organisations to continuously enhance their knowledge, refine their practices, and adapt their structures to stay competitive and resilient.

This course is designed to help students develop essential competencies in these areas, focusing not only on decision-making and strategic management at the project level but also on their application at the organisational level. By engaging with strategy-related concepts and applying practical tools and techniques, students will gain the ability to address challenges comprehensively and craft effective responses tailored to both project and organisational contexts within construction sector.

This course is designed to help students develop essential competencies in these areas, covering decision-making and strategic management at both the project level and the organisational level. Students will learn to approach problems from the perspective of different strategic management and decision making theories and apply concepts from these theories to real-life cases. By doing this, will gain the ability to analyse challenging situations and provide effective, tailored responses to the multifaceted problems faced by construction sector organisations today.

Learning outcomes (after completion of the course the student should be able to)

  • account for and explain different decision-making strategies and their usefulness in project organizing.
  • critically evaluate common biases that affect the decision-making process and exhibit knowledge on how to mitigate the effects these biases
  • consider how risk and uncertainty affects decisions and how to assess risks in an unbiased fashion.
  • describe the concept of strategy and discuss the significance of strategic management in the construction management practice.
  • explain and compare different approaches to strategic management and discuss how they can benefit from different perspectives in their managerial practice.
  • apply the concepts within different strategic management approaches to the construction sector specific cases.
  • critically evaluate the key domains and interfaces of project organisation and assess the role of strategy-making within these contexts.

Content

The course begins with an introduction to strategic management, emphasizing the interconnected nature of decision-making across project, organisational, and sector levels within the construction sector. The focus then shifts to a critical review of decision-making literature, exploring various perspectives on normative and descriptive models of decision-making, including heuristics and biases, as well as the concepts of risk and uncertainty.

Building on this foundation, the course examines strategy-making within the construction sector, where students will explore diverse perspectives from strategic management literature, with an emphasis on their applicability at both the organisational and project levels. As the course progresses, attention turns to topics such as strategic misinterpretation, strategy-making at the sectoral level, the role of policy narratives, the planning fallacy, and sunk costs. In addition, industry speakers from client, contracting, and project management firms are invited to discuss strategy-making within their organisations and practices.

Weekly course structure and the content of each lecture will be based on the extension of these topics.
  • Introduction to strategy and decision making - Looking at different levels (Sector/Organization/Project)
  • Classical approach to strategic management – Macro environment analysis
  • Resources, competences, and capabilities – Inside the organization
  • Risk and uncertainty
  • Perspectives on decision-making
  • Process approach to strategy
  • The practice of strategy
  • Heuristics and biases
  • Strategy as discourse
  • Strategic misinterpretation
  • Planning fallacy and sunk cost
  • Key domains and interfaces of project organizing and the role of strategic management and decision making

Organisation

  • lectures
  • seminars
  • in-class reflection exercises
  • project work
  • supervision and feedback

Literature

The course literature will primarily consist of scientific papers, with excerpts from selected construction and project management books. A detailed reading list for each session will be uploaded to the Canvas page prior to the course start. Lecture slides and handouts will also be made available for review ahead of each session.

Examination including compulsory elements

Attendance
Participation in mandatory course activities* (or a relevant compensation assignment in agreement with the examiner) is a prerequisite for passing the course.

Students must participate in at least 80% of the course sessions, attendance will be controlled during the class.

Late submissions will be subject to penalties as outlined in the Canvas page. Students are encouraged to adhere to the submission deadlines to avoid any deductions.

Examination form
The course includes several examination forms as written lecture reflections, individual assignments, and group work.
  • Written Lecture Reflections (1.5 hp). Grading scale: U/G
  • Mid-Course Assessment (20% of the final group project). Grading scale: TH
  • Individual Written Report (2.5 hp). Grading scale: TH
  • Group project work (3.5 hp). Grading scale: TH
Grade limits are as follows:
Grade (Point range)
5 (80-100)
4 (60-79)
3 (40-59)
Fail (< 40)

The course examiner may assess individual students in other ways than what is stated above if there are special reasons for doing so, for example if a student has a decision from Chalmers about disability study support.